Nine Entertainment Co. (Nine) (ASX:NEC) and Southern Cross Austereo (SCA) (ASX: SXL) have today announced the signing of a new regional television affiliation agreement. The five-year agreement will see SCA broadcast Nine’s metropolitan free-to-air television content into regional Queensland, Southern NSW and regional Victoria from 1 July 2016.

Under this landmark agreement, the SCA channels will carry Nine’s branding and broadcast its premium Australian and international content including The Voice and The Block, as well as all NRL and Cricket broadcasts, providing a seamless Nine brand across metropolitan and major regional markets.

SCA will pay Nine an affiliation fee of 50 per cent of its television revenue.

As part of the new affiliation deal, Nine and SCA have agreed to work together on a number of opportunities to mutually grow their businesses.

The agreement provides for a substantial expansion of news services broadcast by SCA. Nine’s market-leading news bulletins featuring international, national and locally produced news will be broadcast to regional markets across Queensland, Southern NSW and Victoria.

As part of the arrangements, SCA will provide national sales services for Nine’s NBN channel in Northern NSW and NTD9 in Darwin. This will provide advertisers with a centralised port of call for their regional advertising on Nine’s content across the entire Eastern seaboard.

Hugh Marks, CEO of NEC, said, “This is a great outcome for Nine and SCA. We are confident that, together, we will offer a premium viewing experience for audiences and a best in class platform for advertisers.”

Welcoming the agreement, Grant Blackley, CEO of SCA, said, “I’m excited SCA is entering into this landmark long-term agreement with Nine, a media company which has so successfully informed and entertained Australian audiences for many decades.”